Portfolio Asset Allocation on LEE Pension Fund Research Paper - 1

Portfolio Asset Allocation on LEE Pension Fund - question Paper Exampleate bonds had the lowest correlation (-0.011827), implying it would be a desired asset for try reduction, among the portfolios, by means of increased diversification. Standard deviations (SD) and means were also calculated in order to demo a relative comparison between the different asset classes with regard to return and risk.Before 1970s, original estate never outliveed as a recognizable and established investment asset class. As an alternative, the portfolios of organizational investors like pension funds entailed almost exclusively of bonds, stocks, and cash. However, this situation was changed as inflation and modern portfolio surmise caused the establishment of real estate one institutional investment asset class. The current undesirable public presentation in equity market implies real estate is progressively registering mixed-asset portfolio. Nevertheless, determining whether the desired return in real estate is one long-term phenomenon or a temporary thing is a refer that remains hugely unanswered. In simple terms, little or no even evidence exist to prove whether real estate ought to play an unswerving function in mixed-asset portfolio across long-term and short investment horizons. We intend to explore and give more light with regard to the uncertainty surrounding mixed-asset portfolio. This was our uncreated concern as far as this paper is concerned.So as to protect the portfolios from any short or long-term fluctuation in the market, the pension systems spread assets across a wide hurtle of asset classes. This allowed each portfolio to uphold stability through the turbulent market cycles. Every systems asset was invested in bonds, stocks, real estate, and global asset allocation strategies, with a small asset allocation to associate partnerships. The assets merged in the analysis were given as followsThese investment categories exhibited imperfect correlations sinc e when one category was wavering, another was doing extremely well or